Self custody yield refers to the earnings generated from digital assets that remain under the direct control of the asset owner. This typically involves staking, lending, or providing liquidity to decentralized finance protocols while holding the private keys to the funds. Unlike custodial yield, users do not transfer their assets to a third-party service. It allows individuals to earn returns while maintaining full ownership and control.
Context
The concept of self custody yield is gaining prominence as users prioritize control over their digital assets amidst concerns about centralized platforms. Discussions often focus on the technical expertise required for secure self-custody and the risks associated with direct protocol interaction. This area is a key driver for decentralized finance growth.
The CoBTC primitive utilizes native multi-signature smart accounts to eliminate custodial risk while enabling leveraged, cross-chain yield generation for the Bitcoin asset class.
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